Today's Stock Market Swoon

michael at michael at
Fri Apr 14 18:02:59 PDT 2000

Max, the tax argument is a logical possibility. Say that I sold by Cisco or Qualcomm earlier this year to buy a new hot IPO. I incurred capital gains, but may not have money on hand to pay my taxes. I have no idea how important this phenomenon might be.

> . . . Monday is tax day. A lot of winners at the Wall Street casino owe a
> bundle on their capital gains, and are probably cashing some chips to pay
> their taxes. . . .
> Not likely. Taxes on cap gains are not owed unless
> you cash in, so you needn't cash in to pay taxes on
> gains that are not yet taxable.
> I'm no tax-planning bandit -- that's a whole career
> in itself -- but far as I know the only relevant day
> for tax avoidance is Jan 1, since gains realized then
> are pushed into the next tax year.
> mbs

-- Michael Perelman Economics Department California State University Chico, CA 95929

Tel. 530-898-5321 E-Mail michael at

More information about the lbo-talk mailing list